Paying Taxes: Does The IRS Take Plastic?

Paying Taxes: Does The IRS Take Plastic?

Have your clients ever inquired about paying their federal tax bill with a credit card or debit card? Drake provides two options to help your client pay their taxes electronically - Integrated File and Pay and the Drake e-Payment Center. Here’s an overview of each service:

• Integrated File and Pay (IFP) — IFP is a fast and secure way to pay a tax due amount by credit or debit card when the return is e-filed. The payment is authorized before the return is e-filed and is processed after the return is accepted. The payment process is easily initiated from within data entry on the tax return’s EPAY screen – once you have completed the return, enter the taxpayer’s credit or debit card information on the EPAY screen and initiate authorization of the payment prior to e-filing the return. Once the e-filed return is accepted by the IRS, the credit or debit card is charged and the taxpayer is notified via email.

Forms/payments supported:

E-filed Form 1040, U.S. Individual Income Tax Return

E-filed form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return

• Drake Software e-Payment Center — The e-Payment Center,www.1040paytax.com, is a great option for taxpayers who choose to pay their tax bill at their own convenience after the return is filed. Unlike IFP, this option is not integrated with the e-file process; instead, taxpayers can simply go to our e-Payment Center at any time to make their payment. In addition to Form 1040 and 4868 payments, many other payment options are available at the e-Payment Center, including year-round quarterly estimated tax payments.

These options are offered through our partnership with Value Payment Systems (VPS). VPS hosts and maintains the IFP solution and the E-Payment Center website. VPS is partnered with RBS WorldPay, one of three companies authorized by the IRS to process tax payments.

The Taxing Subjects staff is proud to cover the latest in tax-industry-related news, from tax law and IRS updates to technology and business strategies. If you have questions about an article or just want to reach out to the Taxing Subjects staff, email comments@taxingsubjects.com.